An investment group paid $22.7 million for a shopping center in Homestead, Florida, a fast-growing area between Miami and the Florida Keys known for its small-town feel and large tracts of vacant land.
Orly Properties of Aventura, Florida, acquired the 85,873-square-foot Crystal Lake Shopping Center for $264.50 per square foot. The seller was MMG Equity Partners of Pinecrest, Florida.
The fully occupied center at 3316-3338 NE Seventh St. was built in 2017 and is anchored by 24 Hour Fitness and Presidente Supermarket.
Homestead, incorporated in 1913, is the second-oldest city in Miami-Dade County after Miami. In 1992, Homestead took the brunt of Hurricane Andrew’s 175 mph winds, which destroyed homes and businesses and caused thousands of people to move away.
But nearly three decades later, the city of more than 70,000 residents is back on a development trajectory, with people moving there for its affordable housing.
The area's population has grown at one of the fastest clips in Miami-Dade over the past five years, and a pipeline of new apartments that started in 2014 remains robust, according to CoStar.
Homestead has lower median household incomes than the Miami-Dade average, but apartment rents are close to 60% below the county average, according to Christos Costandinides, director of market analytics with CoStar in Miami.
Meanwhile, the Homestead retail sector remains strong, with demand far outpacing new projects in the past five years, leading to one of the lowest retail vacancy rates across Miami-Dade, he noted.
"A growing Miami economy and a high level of apartment and single-home construction are driving demand in this area," Costandinides said in an email.
For the Record
Kirk D. Olson and Drew A. Kristol of Institutional Property Advisors in Miami represented the seller in the deal and found the buyer. Institutional Property is a division of Marcus & Millichap.
https://product.costar.com/home/news/781902845
